Greece\u2019s housing problem is deteriorating considerably, the Bank of Greece said in its recent financial stability report, noting that housing costs as a percentage of disposable income reached 35.5% in 2024.<\/p>\n
This is due to the increase in house prices and rents, combined with the tax burden on real estate and the increased operating costs. The BoG speaks of \u201cthe beginning of an accumulation of cyclical systemic risks\u201d for the economy, without however causing concern from a financial stability perspective, especially considering the low level of housing loan disbursements.<\/p>\n
Based on the relevant data, mortgage disbursements amounted to 819 million euros in the first half of this year, recording a 38% increase on last year when the corresponding figure came to \u20ac593 million. A significant percentage of domestic demand concerns purchases without the mediation of banks, that is, without bank lending. However, despite this increase, new housing loan disbursements, even with the contribution of the \u201cMy Home II\u201d program, remain very low compared to the period before the financial crisis. That is despite the fact that since January 1, 2025, credit criteria have been relaxed, allowing lending of up to 90% of the value of the property, when it is a first residence (and up to 80% if it is not a first residence).<\/p>\n
According to the BoG, the price trend in the Greek housing market is still showing no signs of slowing down and is expected to continue rising in the coming period, as long as demand from the domestic market, as well as from abroad, remains strong and, at the same time, the stock of available housing remains limited.\u00a0<\/p>\n
Regarding supply, the central bank notes that \u201cthe low supply in relation to demand is a result of the investment exploitation of housing, the withdrawal from the market of properties that secure nonperforming loans and are intended for auction and the reduction in the number of newly built housing units in the period 2010-2020, which has not allowed for the smooth replenishment of the stock.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Greece\u2019s housing problem is deteriorating considerably, the Bank of Greece said in its recent financial stability report, noting…\n","protected":false},"author":2,"featured_media":151829,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[174],"tags":[79,179,18,19,17,1658],"class_list":{"0":"post-151828","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-eire","11":"tag-ie","12":"tag-ireland","13":"tag-property"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/115458638239241099","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/151828","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=151828"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/151828\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/151829"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=151828"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=151828"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=151828"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}